Hello everyone,
In September 2020, we signed a fixed-price contract (with a 12-month fixed price guarantee) with a major general contractor, as they offered us a "land search service." Unfortunately, to this day, the contractor has not presented us with any plots of land on which we could build. In January 2021, we found a plot ourselves and recently met again with our contractor to finalize our building project. The seller has now informed us that there was a price increase of about 4.5% in December 2020. The next price increase is scheduled for June 2021 and is expected to be around 3.4%. Of course, we want to build at the price that was offered to us in September 2020. We understand that construction costs are at a very high level and that price increases are justified to some extent.
My question is whether the seller was obligated to inform us about the price increase in December 2020. Does this make the signed contract void? His advice was to quickly sign a new contract with another 12-month fixed price guarantee to avoid the price increase in June 2021, since we will not be able to start construction by September 2021 (because the plot is in a new development area and has not yet been connected to infrastructure).
We now feel somewhat pressured, as we are concerned that interest rates might rise further and that the house costs will increase significantly.
Thank you in advance for your comments.
In September 2020, we signed a fixed-price contract (with a 12-month fixed price guarantee) with a major general contractor, as they offered us a "land search service." Unfortunately, to this day, the contractor has not presented us with any plots of land on which we could build. In January 2021, we found a plot ourselves and recently met again with our contractor to finalize our building project. The seller has now informed us that there was a price increase of about 4.5% in December 2020. The next price increase is scheduled for June 2021 and is expected to be around 3.4%. Of course, we want to build at the price that was offered to us in September 2020. We understand that construction costs are at a very high level and that price increases are justified to some extent.
My question is whether the seller was obligated to inform us about the price increase in December 2020. Does this make the signed contract void? His advice was to quickly sign a new contract with another 12-month fixed price guarantee to avoid the price increase in June 2021, since we will not be able to start construction by September 2021 (because the plot is in a new development area and has not yet been connected to infrastructure).
We now feel somewhat pressured, as we are concerned that interest rates might rise further and that the house costs will increase significantly.
Thank you in advance for your comments.
kbt09 schrieb:
The first question is: when is the site development guaranteed, so that you can start? Or is it possibly not guaranteed at all? As of now, construction is expected to begin in 10/2021.
ArtemR90 schrieb:
Are such price increases insignificant? Can we withdraw from the contract due to price increases if we have documented in writing since when the prices are no longer the same and can prove that a construction start before 09/2021 was not realistic? Why should that be the case? Of course not. You have a contract, and the company will honor it exactly as agreed. The agreed price is fixed for 12 months, then a different price applies. And again, the start of construction does not matter at all. That is why you hardly find supporters of these construction contracts with land services here. You commit yourself to a company and deadlines apply, even if a plot of land is not yet in sight. That is how it is now and cannot be changed, but you will have to live with the consequences.
What does the contract say about the situation if no land is found? Only the contractual reasons described there would give you a right of withdrawal.
ArtemR90 schrieb:
In September 2020, we signed a fixed-price contract (with a 12-month fixed price guarantee) with a large general contractor because they offered us a "land search service." Unfortunately, up to now, the general contractor has not presented us with a plot of land on which we could build. In January 2021, we found a plot ourselves and recently met with our general contractor again to finalize our building project.If the "large general contractor" has a name reminiscent of a body part of a poodle, as far as I know, the contracts usually end if no suitable land is found. The suitability is assessed based on whether the plot is buildable with the house model specified in the contract. In that case, I wouldn’t have told them that I found land myself but would have calmly waited for them not to find anything (which is not uncommon in this kind of situation).https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
